by C. Trent Rosecrans, USA TODAY Sports

by C. Trent Rosecrans, USA TODAY Sports

LAKE BUENA VISTA, Fla. -- The Cincinnati Reds have discussed trading second baseman Brandon Phillips to the New York Yankees for outfielder Brett Gardner.

Persons close to the deal from both sides said late Wednesday that the deal was rejected.

CBSSports.com's Jon Heyman was the first to report the news.

There are ongoing talks between the teams including - but not limited to - both players, but a one-for-one deal with the Yankees taking Phillips' contract is not happening at this point.

Complicating the deal is the 12-team no-trade clause that is part of Phillips' deal. The Yankees are one of the 12 teams on Phillips' list, which must be re-submitted each year after the season.

Heyman also reported that Phillips asked to have his contract re-worked as any part of a deal to the Yankees. Phillips has four years and $50 million left on his contract extension, signed before the 2012 season.

Teams typically inform a club that they are on a no-trade list during talks, but teams will usually only ask a player for permission after initial parameters are agreed upon. That stage wasn't reached with a potential Gardner-Phillips trade.

Yankees sources say the team is reluctant to trade Gardner despite the recent signing of outfielder Jacoby Ellsbury and Carlos Beltran. The Yankees have a glut of outfielders, but prefer to move older outfielders, such as Ichiro Suzuki or Vernon Wells. Of those, Gardner is the best defensive outfielder and can play center field.

The Yankees have said they would move Gardner if the price is right, which is exactly what the Reds have said about Phillips.

Both players could still be moved, even in a deal with each other, although a one-for-one deal won't happen.

The Reds are also committed to working on an extension with right-hander Homer Bailey, the other name mentioned in trade rumors, according to sources.

Cincinnati is not, as has been reported, looking to unload Phillips at any cost. With the likely loss of free agent Shin-Soo Choo, losing Phillips would be another blow to the team's offense.

If the Reds are to trade Phillips, it will be easier to do it before August, when he will gain full no-trade rights after reaching 10 years of service time, including at least his last five with the same team.

Despite his contract, the Reds have received multiple inquiries about Phillips. Last week Reds general manager Walt Jocketty said the team was not actively talking to any teams about Phillips, but did say they would listen to any offers. The team has discussed Phillips with other teams at this week's Winter Meetings at the Swan and Dolphin Resort at Walt Disney World.

Dealing Phillips could open up payroll space for the team, which is already under a budget crunch. While Jocketty has met with agent Scott Boras about Choo, a deal to bring him back to Cincinnati is still seen as unlikely.